Surprise Delta investment on LATAM Airlines Group to fire up competition

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Surprise Delta investment on LATAM Airlines Group to fire up competition

An investment of $1.9 billion of the United States’ second-largest aviation industry giant, Delta Air Lines in to LATAM Airlines Group last week that came as a surprise to many, would likely to ratchet up heats in South American aviation industry, as the Atlanta, Georgia-based leading US airliners’ surprise investment on LATAM Airlines Group that bolted out the blue would strengthen footings of the homegrown, big-league aviation industry player.

As a matter of fact, United States’ No. 2 airlines by revenue, Atlanta-based Delta Air Lines had long been yearning to get a better stance in the South American aviation market, nonetheless, a merger of Chilean LATAM Airlines with American Airlines had been pouring scorns over attempts of Delta Air Lines to become one of the aviation industry leaders in Latin America.

Aside from that, followed by the split of LATAM Airlines and American Airlines last month, the US-based airliner had quickly announced new flights next year from Miami to Peru and Chile, while a much budget-friendly Delta Air Lines’ latest investment on LATAM Airlines would likely to stress market dominance of American Airlines.

Meanwhile, adding that Latin America travellers had been suffering from a higher flight expense at a much-monopolized aviation market with only two aircraft carriers, a principal at Consulting Company ICF, Carlos Ozores said on Monday (October 7th), “This shows you that the (American-LATAM) partnership ultimately ended up undermining supply.

There was no competition before because these were two carriers that coordinated their fares and worked as one. ”